Statement of Account standard (SAS2) contains information that should be
disclosed in financial statements.
disclosed in financial statements.
In part 3 section 7, it states that clear and understandable information
of an enterprise or entity nature and ownership of an enterprise or entity
reported on usually disclosed in one or more of the contents of financial
statements described in the following paragraphs:
of an enterprise or entity nature and ownership of an enterprise or entity
reported on usually disclosed in one or more of the contents of financial
statements described in the following paragraphs:
(a) The balance shows the
assets, liabilities and proprietors on interest at a point in time.
assets, liabilities and proprietors on interest at a point in time.
(b) The profit and Loss
account or the income statement reports revenue, earning or turnover and the
expenses of an enterprise for a given accounting period.
account or the income statement reports revenue, earning or turnover and the
expenses of an enterprise for a given accounting period.
(c) Note on the accounts-
They usually form an integral part of financial statement and provide detailed
or supplementary information in respect of items disclosed in the balance sheet
and the profit and loss account.
They usually form an integral part of financial statement and provide detailed
or supplementary information in respect of items disclosed in the balance sheet
and the profit and loss account.
(d) Source application of
funds statement provides information on the derivation and utilization of funds
during the period coursed by the financial statements.
funds statement provides information on the derivation and utilization of funds
during the period coursed by the financial statements.
(e) Value Added statement
reports the wealth created by an enterprise during the period covered by the
financial statement. It usually shows how the wealth created is distributed
among various interest groups example employee, government, creditors and
proprietors.
reports the wealth created by an enterprise during the period covered by the
financial statement. It usually shows how the wealth created is distributed
among various interest groups example employee, government, creditors and
proprietors.
(f) Historical financial
summary enables an instant comparison over a period usually five years, of
vital information about an enterprise particularly with regard to its:
summary enables an instant comparison over a period usually five years, of
vital information about an enterprise particularly with regard to its:
– turn over
– Profits before and
after taxation
after taxation
– Dividends
– Assets employed
– Issued and paid-up
capital
capital
– Reserves
Medium and long-term
liabilities
liabilities
– Earning and dividends per
share.
share.
Part 4, section 11 of SAS 2 states that the financial statements of an
enterprise should state:
enterprise should state:
(a) The name of the enterprise
(b) The period of time covered
(c) A brief description of
its activities
its activities
(e) Its relationship with its
significant
significant
Local and overseas supplies including the immediate and ultimate parent,
associated or afflicted company. There should also be provision for Capital and
Reserves.
associated or afflicted company. There should also be provision for Capital and
Reserves.
SAS 2 also classified assets into fixed and other long term assets, long
term investment, intangible assets, current assets, short term investments,
long term debts etcetera.
term investment, intangible assets, current assets, short term investments,
long term debts etcetera.
Liabilities are to be classified into long term liabilities, current
liabilities and General. Classified under general are restrictions on the titles
to assets, restrictions on the distributions on the distribution of dividends
etcetera.
liabilities and General. Classified under general are restrictions on the titles
to assets, restrictions on the distributions on the distribution of dividends
etcetera.
